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...good reason to doubt Greece will find any quick fix for its tax problems. Like other southern European nations, the country's culture of tax evasion is deeply rooted, woven into the very fabric of relations between the citizen and state. "Greeks love their country, but they don't trust it," says a small businessman who asked to be called Dimitris, saying he feared repercussion from the authorities if he gave his real name. "They tell us the state is broken. There is no money for health, for pensions, for education. On the other hand, we see people building...

Author: /time Magazine | Title: Taxing Times in Greece | 2/15/2010 | See Source »

Papandreou says fixing Greece's mess will require rebuilding people's trust in the government. "This is more than an economic problem," he told reporters. Greece's government, he said, had a "credibility deficit" at home and abroad...

Author: /time Magazine | Title: Taxing Times in Greece | 2/15/2010 | See Source »

Cleaning up Greece's wasteful and corrupt state sector, and regaining citizens' trust, will take years. The government is pinning its hopes on increasing tax revenues. Some of that will come from new taxes on items such as luxury goods and fuel. But Athens also insists it can raise $1.67 billion in the short term by cracking down on tax evasion. The government has promised a radical reform of the country's complex and inefficient tax system and says a comprehensive new law, which is intended both to simplify the system and to spread the tax burden more fairly, will...

Author: /time Magazine | Title: Taxing Times in Greece | 2/15/2010 | See Source »

Problem is, though, the markets are finding it tough to trust Athens. At the World Economic Forum in Davos rumors swirled - despite assurances to the contrary by Greek and E.U. officials - that Greece was on the brink of a default and would need a bailout from Brussels or the International Monetary Fund (IMF) - or even get booted out of the E.U. altogether. "If any other country was making the kinds of adjustments that we are, it would be applauded," says Papaconstantinou. "In our case, they are not sure we are actually doing it." (Read: "Why Greece Could Be the Next...

Author: /time Magazine | Title: Greek Tragedy: Athens' Financial Woes | 2/15/2010 | See Source »

...with Washington among likely Republican voters. Hutchison's storied 17-year career - she is ranked as one of the 30 most powerful women in the country by Ladies' Home Journal - and her success in bringing home the bacon has become a liability. When poll respondents were asked whether they trust Austin or Washington politicians more when it comes to problem solving, 78% said Austin, and just 3% picked Washington. It is a point Perry pounds home in his ads. (See a story about Rick Perry and the secession ruckus in Texas...

Author: /time Magazine | Title: The Texas GOP Governor's Race: Three's a Crowd | 2/11/2010 | See Source »

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